Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	732,378	612,577	639,998	587,251	578,377	444,142	285,163	183,503	124,959	110,701	111,865	91,153	88,532	84,564	84,308	89,568	84,407	78,921	71,918	61,463
Total stockholders’ equity	US$ in thousands	3,076,910	2,165,380	1,972,000	1,768,410	1,818,680	1,625,040	1,425,580	1,273,740	1,186,670	1,132,620	1,096,220	1,053,780	1,064,050	1,072,570	1,065,540	1,038,230	1,001,390	971,694	941,015	912,998
ROE		23.80%	28.29%	32.45%	33.21%	31.80%	27.33%	20.00%	14.41%	10.53%	9.77%	10.20%	8.65%	8.32%	7.88%	7.91%	8.63%	8.43%	8.12%	7.64%	6.73%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $732,378K ÷ $3,076,910K
= 23.80%

From Q3 2022 to Q2 2024, Super Micro Computer Inc's return on equity (ROE) has shown a generally positive trend, increasing from 14.41% to 23.80%. This upward trend indicates that the company has been effectively generating profits from the shareholders' equity over this period.

The company's ROE peaked at 33.21% in Q3 2023, demonstrating a strong performance in utilizing equity to generate returns. However, there was a slight decrease in Q4 2023, but the ROE remained relatively high at 32.45%.

In the most recent quarter, Q2 2024, the ROE decreased to 23.80%, indicating a potential dip in efficiency in generating profits from the shareholders' equity compared to the previous quarter.

Overall, Super Micro Computer Inc has shown a consistent ability to generate returns on equity above 20% over the past few quarters, indicating strong financial performance and efficient utilization of shareholders' funds. Investors and stakeholders may view this positively as it signifies the company's ability to generate profits relative to the amount of equity invested in the business.